HomePath properties are foreclosed homes owned by Fannie Mae. While some are move-in ready, others are in poor condition and require immediate repairs. Learn what Fannie Mae HomePath properties are, how they work, and what you need to do to purchase one.
Definition and Examples of a Fannie Mae HomePath Property
Through the HomePath property program, Fannie Mae sells homes it obtained following foreclosure and deed-in-lieu foreclosure.
Fannie Mae HomePath properties include single-family homes, townhouses, and condominiums. They are usually more affordable than non-foreclosure homes and come with a variety of noteworthy benefits, including down payments as low as 3% and closing-cost assistance.
How Fannie Mae HomePath Properties Work
Through HomePath.com, you can view all of Fannie Mae HomePath properties, detailed descriptions, and recent photos. The site includes a filter option to help you narrow your search to homes that match your specific criteria. While Fannie Mae may make some repairs on a HomePath property, there’s no guarantee that the home won’t need additional repairs.
Fannie Mae doesn’t guarantee it will do any repairs and renovations, making it important to hire a home inspector and purchase a home warranty, if possible.
If you’d like to purchase a foreclosed home before it’s offered to investors, Fannie Mae’s First Look program can help you do so. The “first look” usually takes place within the first 20 days a property is listed on HomePath.com (except for homebuyers in Nevada, who have 30 days) and includes a countdown clock that shows how much time is left to purchase it.
You can purchase a Fannie Mae HomePath property with a conventional mortgage. In the event you don’t meet lender requirements for a conventional loan and thus are unable to purchase a property, these financing options are at your disposal.
- HomeReady Mortgage Program: HomeReady may be a good option if you want to purchase a single-family home and can meet certain income criteria in your area. You may put as little as 3% down. To qualify, you’ll need to complete the Framework homeownership course.
- HomePath Ready Buyer Program: If you complete the homeownership course and purchase a HomePath property, you can receive up to 3% back in closing costs through Ready Buyer.
You may participate in both the HomeReady and Ready Buyer programs as long as you qualify. HomeReady loans require a credit score of at least 620, while class attendance is the only requirement for Ready Buyer’s closing-cost assistance.
How To Get a Fannie Mae HomePath Property
If you decide to purchase a Fannie Mae HomePath property, you’ll have to go through the following steps.
Find a Real Estate Agent
The first step is to find an experienced agent you trust. To do so, ask friends and family for recommendations and browse reviews of agents in your local area. You can’t purchase a HomePath property without a real estate agent.
A preapproval letter from a lender shows the seller that you have tentative approval for mortgage funding up to a certain amount. While preapprovals aren’t required for HomePath properties, they can put you in a better position to close quickly and enable you to browse homes directly in your price range.
Browse HomePath Properties
Visit HomePath.com to explore the various properties available to you. You can search by filters like price, zip code, and number of bedrooms.
Complete the Buyer Education Course
The Framework buyer education course covers multiple topics related to homeownership and mortgages. It consists of nine modules you’ll need to complete before you can purchase a HomePath home. If you sign up for the HomePath Ready Buyer closing-cost assistance program, you’ll need to complete the education course before you make an offer on a home.
Submit an Offer
Once you complete the required course and find a home you like, your real estate agent can submit an offer on your behalf through the HomePath Online Offer portal. If your offer is accepted, your agent will help guide you through the closing process. In most cases, the closing process will require you to sign an owner-occupant certification form that promises you’ll move into the home within 60 days of closing and use the home as your primary residence for at least one year.
- Fannie Mae HomePath properties are foreclosed properties owned by Fannie Mae.
- HomePath homes come with a variety of perks, such as lower price points and special financing options.
- Because the homes are foreclosures, they may need repairs.
- To purchase a Fannie Mae HomePath property, you’ll need to work with a real estate agent and complete a buyer education course.